Banking-and-finance

Short Term Business Financing Short Term Business Financing Short term working capital financing has become a difficult task for most commercial borrowers. It might look like all is lost if small business owners are faced with a funding situation in which their bank cannot help. Instead, learning that your banker is not up to the task of providing short-term working capital should simply be the starting point for seeking new and effective sources that are capable of providing sound business loan help.
Underlying the current difficulties for obtaining short term financing are at least five key factors impacting most business borrowers. Three of the factors are discussed below, and all of the issues are related to recent commercial lending chaos seen nationwide.
First, unsecured lines of business credit have all but disappeared for many businesses. Due to many banks deciding to eliminate this kind of business financing (rather than a lending decision that is based on the payment history of the business owner), this is occurring in many locations. In a typical situation, the bank reducing or eliminating a commercial line of credit will provide the business owner with a 30 to 90-day period to make new financing arrangements.
Second, most banks are now requiring

more collateral for all forms of commercial financing. Providing additional collateral in a depressed economy is not feasible for most businesses because there are likely to be reduced valuations for commercial property and many other business assets.
Third, many regional and local banks are exiting all (or most) commercial lending activities. In practical terms, a significant number of banks operating nationally appear to have made a similar decision (whether they have in fact announced it publicly is another matter).
At least one of the three factors mentioned (or one of the two factors not discussed) has probably already impacted many small business owners. Although any business owner who has been (or will be) victimized by what appears to be confusing and perhaps unfair lending practices might not agree, there are some positive developments which will help many businesses.
Although commercial banks have largely abandoned their previous commercial programs, new business lending options are rapidly emerging to fill the large void left by banks no longer active in this field. Flexible new funding programs for short term working capital are among the most promising alternatives.
Because confusion can result for even the most experienced business owner, it will be prudent for borrowers to seek the counsel of a commercial expert who will speak candidly about the prospects for a business seeking short term working capital financing. In most cases the new and more effective options for short term working capital and small business financing should be considered seriously by small businesses.
Stephen Bush provides business financing help at http://working-capital.squarespace.com - please also visit http://business-financing.blinkweb.com/ or http://www.squidoo.com/small-business-financing-help